PURCHASE

FIRST-TIME HOMEBUYERS

Owning a home offers any visible benefits, such as more space, a nicer environment, and the ability to customize the interior and exterior of your home to your personal tastes. Additionally, you may receive numerous financial benefits that may help you for the rest of your life, including:

Interest Deductions

Many borrowers can deduct the interest on their home loan and the real estate taxes they pay on their federal, and sometimes, state tax returns (consult your tax advisor). This tax advantage may make it effectively cheaper to own than rent.

Equity

As you pay down your mortgage loan balance and if the value of your property increases, your home ownership translates into equity that can be used to help finance other manor purchases in the future or as a down payment for your next home.

Protection Against Inflation

Owning a home can serve as a solid investment to counteract the potential decline in the value of the dollar over time. While past performance cannot guarantee future trends, real estate has historically appreciated at a higher rate than inflation in most regions

Buying a home requires more than just the money for a down payment. You must commit to taking control of your surroundings and your finances instead of letting other people do it for you, and that takes preparation and knowledge.

Lexington Home Loans works with you every step of the way to make buying your first home as easy as possible. Working with us, you'll understand how owning a home is more attainable-and understandable-than you may realize.

Here you can find everything you need to research and obtain a home mortgage through Lexington Home Loans. With over 30 years of experience, Lexington Home Loans has the tools and assistance you need to secure a mortgage quickly and conveniently.

15 & 30-YEAR FIXED-RATE LOANS

Ideal for first-time buyers, these no down payment mortgages can help reduce or eliminate nearly every cost associated with obtaining a home loan. You may finance for 97.5% (FHA) or 95% (conventional) of the sales price of the home with this mortgage program. You may choose to have one loan or some lenders will split it into two loans as a combination mortgage package to avoid PMI, otherwise known as an 80/15 loan. The 80% first mortgage offers a variety of rates & terms. The concurrent 15% second mortgage allows you to finance the remaining amount of the loan without paying mortgage insurance. When purchasing a home, 95 – 97.5% financing allows you to reduce your initial investment to your portion of the closing costs. You can reduce this initial investment even more by having the seller pay for certain closing costs.

Lower your interest rate and start saying on your monthly payments. Lexington Home Loans can offer you the flowing loan products with the security of fixed rate payments:

15 Year Fixed Rate

Choose this if you want:

A shorter loan life and lower rates

To remain in your house less than 10 years

Greater savings over the life of the loan if low monthly payments are not apriority

30 Year Fixed Rate

Choose this if you want:

Low monthly payments that don't change

A loan that's generally easier to qualify for

To remain in your home longer than 10 years and pay off your loan

The maximum tax advantage (please consult your tax adviser)

Self-Employed Borrowers

We understand that one of the advantages of being self employed is to be able to take certain tax deductions that make your income appear to be less than it really it is. Since the ability to verify your income is an important part of the loan process, we have loan programs that allow alternative ways of proving your income. Some programs allow you to simply state on the application how much you make with no verification of that income required. These loans range from 80 -97.5% of the sale price of the home and will vary in interest rates & terms.

Less Than Perfect Credit

Our mortgage specialists understand that real life situations happen to real life people. If you are a borrower that has had credit challenges in the past, there are a multitude of loan programs for you. Each borrower is unique and no tow loans are the same, your individual situation has a loan solution. Your mortgage specialist will work to find the best loan available to achieve your goals & needs. Don't prejudge your credit; let Lexington Home Loans give you a no cost loan analysis.

FIXED-RATE VS ARM

Ideal Borrower: Fixed Rate: Borrower who would like to enjoy a fixed, low monthly payment that doesn't change, or who expects the interest rate to rise in the next few years. ARM: Borrower who would like to start with a low monthly payment, or who expects to sell or refinance the property before the adjustable period begins.

Loan Features: Fixed Rate: Loan periods of 10, 15, or 30 years. ARM: Initial fixed interest for 1, 2, 5, or 7 years, with a total loan term of 15 or 30 years.

Interest Only Loan

Considering a low monthly payment by deferring or reducing payments on the loan's principal. One of the powerful option for this loan is, you will have four (4) options on your monthly mortgage coupon to pay, advantage of minimum amount payment, full interest payment only, full interest & principal payment and 15 year payment plan as your option. The extra money can be put towards higher-return investments, or used as improvement for your home or obtain a larger home for your family.

Ideal Borrower: Borrower who wants the maximum flexibility for cash flow, and investment purposes or afford more home for your family.

Deferred Amortization

Allows borrowers the flexibility of making a smaller monthly payment, deferring principal to be paid at a later date.

NEW PURCHASE FAQ

Do I get a tax advantage from having a mortgage?

What are rates, terms and APR?

How do I know what my loan rate till be?

What are points and how many do I have to pay?

How do I qualify for a loan?

Do I Get A Tax Advantage From Having a Mortgage?

You should consult a tax attorney of accountant for specific details, but interest on a mortgage is usually tax deductible. Interest on credit cards or automobile loans is not normally tax deductible.

What are Rates, Terms, and APR?

All mortgages have an interest rate, a term, which is disclosed as an Annual Percentage Rate (APR). FOR EXAMPLE, A mortgage might be defined as a 30-Year Fixed Rate Loan at 3.99%, with an APR of 4.25%.

In this example, the mortgage term is 30 years. As the borrower, you will pay back the loan in installments over the course of 30 years.

The interest rate in this example is 3.99%. This means you must pay interest on the money you've borrowed at a rate of 3.99% per year. That is, in addition to paying back the loan, you will pay your lender an additional 3.99% or the current loan balance every year. This interest is basically the fee your lender charges you in return for lending you the money.

The Annual Percentage Rate (APR) is a measure of the cost of credit, expressed as a yearly rate. Because APR includes points and other costs such as origination fees, it's usually higher than the advertised rate. The APR allows you to compare different mortgages based on actual annual costs.

How Do I Know What My Loan Rate Will Be?

Rates vary primarily based on the type and purpose of the loan, your credit history and income, loan amount, value of the property, and the number of points you are willing to pay.

What are Points and How Many Do I Have to Pay?

Generally speaking, points are fees added on to loans. One point is equal to 1% of your loan amount. Points are paid when the loan closes, not at the time you apply for the loan.

How Do I Qualify For A Loan?

Lenders use specific criteria to determine if you qualify for a loan and amount you can qualify for. You can use our Tools area to determine whether you can qualify for a loan, the types of loan products that are best for you, and many other things. Lexington Home Loans allows you to apply and get preapproved right here online – it's fast, easy, and free (Lexington Home Loans charges no application fee, lock fee).